No matter how you spin it, $60k a year isnt going to hack it in Cali. The consent submitted will only be used for data processing originating from this website. On $60,000, the average state income tax youll pay is $3,594. In towns like Oxford and the suburbs of Memphis, housing is expensive. But only 44% of poll participants said someone making $90,000 a year was rich. ($60,000 - $13,000) / 52 = $903.84. Relocating could instantly upgrade your life. If you want to have lively nightlife, that helps narrow down your search as well. At least you can pay rent, buy food, save for retirement, invest in new skills, and leave room for saving. While the pro of a cheap cost of living may be worth it in some parts of the state, the poverty in other parts is not something I would recommend being a part of by choice. A single person would bring home $22.80 per hour after taxes. People that earn $60,000 per year dont bring that money home. The above figures are in US dollars. I'll also assume you have a simple tax situation and you only claim the standard deduction as a single person. The median household income in the US is $70,784 (Census Bureau). If you are asking what a great salary is, that is a completely different answer. Do you want to know what kinds of photos are in high demand and how to get top dollar when you sell them online? Welcome Home! This is why it is important to find a job that will allow you to grow and develop your skills. Once you know how much you spend each month, you can create a budget that allocates your spending in a way that allows you to save money. Just remember to pick good roommates if you can. This is because the cost of living is typically higher when you have more people to support. The only time you should be concerned about a $60,000 salary is if you have children, and/or live in one of the most expensive locations in the U.S. You most definitely can afford to invest each month and it should be one of your highest priorities. Is $60,000 a good salary? With that in mind, a $60,000 salary is a great start for most college grads. "Is $60,000 a Good Salary?" The median household income in the US in 2018 was $63,179. In this case, we are working with $1,400. If you mean Melbourne AUS, then no $60,000 isnt really enough for you to lead an average lifestyle. You can see the full breakdown by household status, gender, race and more on the US Census Bureau site. If you live in a low cost of living area or you are single your salary will stretch further. Its nearly impossible to factor all of these possibilities into the equation. However, the biggest concern, in my opinion, is housing. Which means that an average salary is typical or good. Unlike adults, kids run through clothes fast. Whether its helpful guides, reviews, or tools, we share firsthand experience and rigorous research on the best ways to make money in the gig economy. Lets compare some cheap and expensive examples. But overall, the average cost of goods is 14% less than the national average, according to the U.S. Bureau of Labor Statistics. To be abundantly clear, $51,000 a year may not be enough to cover everything you want, but it should meet the most common family needs and make ends meet. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. So its important to determine whats more essential and whats not then plan accordingly. Again, the answer to this question really depends on your personal circumstances. That comes out to exactly $30 an hour if you get 2 weeks of paid vacation each year. Making 60k a year is 20% higher than the median household income in the US. With that in mind, lets cover everything you should consider when assessing the quality of a $60,000 salary. Toronto is one of the most expensive cities to live in North America. Thats a fair amount of money. Fresh produce is going to cost you literal change. As a general rule, earnings tend to rise in your 20s and 30s as you start to climb up the ladder. One reason things feel pricey in Canada is that many common items in the U.S. have to be imported to other countries. 6 Tips On How To Address Your Cover Letter, 11 Tips For Decorating Your Office Cubicle, 5 Tips For Getting Hired At A Remote Customer Service Job, Zippia. There are dozens of countries where a 60K yearly salary would afford you an amazing lifestyle. Based on the research done above, $60k a year is above the national average in the United States. Everything is relative to your unique situation. While you can get by as a single person on a $22,000 annual salary in Kentucky or Arkansas, you'll need at least $30,000 in Hawaii or Maryland. Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. The $60,000 may be a good income for a single person living in West Virginia, but it wont be enough for a family residing in Washington DC. If your dollars arent working for you, they are working for someone else. It is important to remember that your salary is just one factor in determining how much house you can afford. State minimum wages are determined based on the posted value of the minimum wage as of January one of the coming year (National Conference of State Legislatures, 2019). 9, 2022, https://www.zippia.com/advice/is-60000-a-good-salary/, What Percentage Of Retail Sales Are Online, Are People More Productive Working From Home, What Percentage Of The Workforce Is Female. get a side hustle or part-time job (i.e., Amazon Associates) to earn more income, get a degree higher than high school (i.e., college or trade school), using 25% of your monthly income for a mortgage payment, accounting for housing costs like property taxes and insurance, paying the average state income tax of 5.99% (youre likely not). Toronto ranks 74 on the Numbeo cost of living index, meaning costs are roughly 74% of New York City. The reason I bring this up is that there is no such thing as perfection. The median household salary in the United States is $60,000. To cover the average expenses, a good salary is going to be $78,700 per year. And depending on where you live, sixty grand may not get you far. You should be able to live in most places, and if youre a young new graduate, you can expect to make more in the future. That said, Mississippi is one of those states where $60k a year is a quality salary for both singles and families. In fact, many lower earners dream to make such an amount. On the other hand, certain states have very high taxes. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. Do you want to make money from your passion for photography? To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. A $60K salary may be more than enough for a recent college graduate living with their parents on the family farm, but a large family in a buzzing city may struggle to get by on it. Is $60,000 a Year a Good Salary? A small bedroom apartment in the city center runs you $150 (less outside the city), so you can guess how cheap everything else is going to be. You wont be able to eat out, and youll more than likely have to get rid of your vehicle and opt for the bus. If you made it this far in this article, you have been through the math. Assuming you dont have any debt, you would have $24,992 leftover for savings and other living expenses such as: It is important to remember that this is only an estimate and your actual expenses may vary. And spending a lot of money unnecessarily leads them to living paycheck to paycheck. Food is another $200 minimum. We achieve this in the following steps: The salary example begins with an overview of your $60,000.00 salary and deductions for income tax, Medicare, Social Security, Retirement plans and so forth. Another factor that determines whether 60K is a good salary is the number of people in your household. If youre wondering how to live cheap and instantly slash expenses (without sacrificing quality of life), this is one epic way to do it. (Or Too Hard? If you are on your own and live alone, then $60,000 annually can be a good salary to support yourself. When you sign up through links on this post, we may receive compensation at no cost to you. ($60,000 - $13,000) / 26 = $1,807.69. If youre a part-time 17-year-old high schooler making $40,000 a year, this is really good. More money has been made in real estate than in all industrial investments combined.. Theaverage monthly expenses per household are $5,111 per month or $61,332 per year. ($60,000 - $13,000) / 24 = $1,958.33. In this article, we will take a look at if a salary of $97,000 good for a single person and which factors play into this. Copyright 2023 Market Realist. Is $60,000 a good salary? Easy home jobs online that you need to know to earn extra money. If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. Here are some tips on how to budget $60,000 a year: For the best ways to save $60,000 a year, check out my article on the best free printable budget templatesto get your finances under control. Contents1 What is a livable wage in Colorado?2 How much does a single person need to make [] Every person is different, and every job is different, but the real question at hand is if earning 60k a year in 2023 is good or not. Due to the fact that the quality of a $60,000 salary can change depending on your circumstances, its good to analyze your situation. The final verdict is this: Is $60,000 a good salary? Instead of working a minimum wage job, youre better picking up one of these online gigs to earn $2,000 a month (or more). If you prefer to do a mix of eating out and cooking, $200 will have you eating whatever you want without hurting your budget. The truth is, $60k a year can have you living like royalty in some parts of the world. The lifestyle you can afford with a 60k salary depends on where you live. If you need a good idea after reading this article, make sure to set good financial goals. When youre growing up, $60k a year can seem like a ton of money. While everyone understands the phrase middle class differently, it generally means you have more money to spend than those who earn the minimum hourly wage of $7.25 an hour and less money than those who make more. We at Financial Creatives want help you understand the conditions under which $60,000 a year is a good salary and when its not. For example, if you are single and earn $60,000 a year, your federal tax would be different than a married couple who earns the same amount. The median living wage for a family of 3 is $19.20 per hour. Your dollars will stretch much further if you avoid most coastal areas of the United States and larger metropolitan areas, otherwise known as high cost of living areas. Since each state has different tax rates, your final take-home pay depends on which state you live in. An example of data being processed may be a unique identifier stored in a cookie. You can live comfortably on this salary if you budget properly and have no major expenses. After contributing a healthy $16,000 to your tax-deferred 401 (k), you are left with $60,000 in gross income to live. Just being able to pay for your expenses isnt a good salary for a single person. Just in case you are worried about what your budget would look like, I figured I could give you a good example. Your Demography The average family of 3 would have $14,400 left over after taxes and living expenses. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. ), should pay more than $60,000, even entry-level. Utilities run you around $200 a month. You probably wont be buying a mansion, but the person making $100,000 a year wont be either. Disclosure. Overall, a $60,000 salary is perfectly healthy for your average individual American. In New York, $60,000 a year is $42,540 for a married couple after taxes. Depending on your unique circumstances, you could have a good amount of money to invest each month. A living wage is an hourly wage needed to cover your living expenses. The living wage shown is the hourly rate that an individual in a household must earn to support his or herself and their family. Then next month find one area in your life that you can cut back on. To be clear, several factors determine whether $60,000 can be enough for you to live on. A good salary for a single person would be $80,000 or more. If you have a large family size and live in San Francisco or New York City, things might be a little tight. Which is $18,260 less per year than the average salary in the US. If the $60,000 is net of taxes, it would be a great amount to take home, but if that's a pre-tax amount, youd be left with about $45,000 after handing the IRS its dues. Manage Settings Chances are youll also be renting a private bedroom inside someone elses place. Generally, $60,000 is a good salary. The median annual expenses for a family is $90,100. In addition to meeting your housing, food, healthcare, and commuting expenses easily, you may be able to pay off debt, save, or invest if you budget properly. The average child costs $14,846 per year to take care of in the U.S. As you can see from the example above, $60,000 a year can be a livable wage or it could be barely enough to cover basic expenses. With discipline and proper financial planning, you can get by comfortably. For example, a law student may earn a modest graduate student stipend of $20,000 per year, which would put them in the low-income class. Keep in mind that youre taking $45,000 or $51,000 home depending on your tax bracket. if you are making $60,000 a year you are making 20% over the average salary in the US. But once you get closer to the Delta, things change, and not in a good way. You know what your opinion is on 60k a year. Earning $78,700 places you in the22% tax bracket. By signing up, you'll also be added to my legendary travel lifestyle email list.